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Josh Frydenberg floats federal intervention in Victorian Liberal Party branch

As internal unrest continues to engulf the Victorian Liberal Party, Treasurer Josh Frydenberg has raised the prospect with colleagues of a federal intervention in the state branch. Here’s how it could work.

Victorian Liberal leader welcomes Bastiaan resignation

Josh Frydenberg is taking the temperature of fellow Liberals about a controversial plan for federal intervention in the party’s conflict-ridden Victorian branch.

The Herald Sun understands the Treasurer, Victoria’s most senior MP, has raised the prospect of an intervention with multiple colleagues, with one saying: “He is laying the ground work.”

While the move is not imminent, it has been discussed at senior levels of the federal government and would have support from several MPs if there was further internal fracturing.

The Victorian branch this week launched a forensic audit of party memberships amid claims of branch stacking, as federal MPs Michael Sukkar and Kevin Andrews sought an independent probe of allegations about the misuse of their taxpayer-funded office resources.

Treasurer Josh Frydenberg and Assistant Treasurer Michael Sukkar. Picture: Stuart McEvoy
Treasurer Josh Frydenberg and Assistant Treasurer Michael Sukkar. Picture: Stuart McEvoy

State president Robert Clark told members the party’s investigation would also seek to identify any “unauthorised or improper access” to Liberal records.

Liberal sources described the allegations aired on 60 Minutes as a “factional hit” on Mr Sukkar and powerbroker Marcus Bastiaan, who has since quit the party along with his wife.

Mr Clark said all members named in the program had been sent a “please explain” and could face suspension or expulsion.

Insiders believe the hit was orchestrated by Mr Bastiaan’s former conservative allies, who had shifted to back Mr Clark. His push for early preselections for sitting federal MPs has been a source of frustration for many of those MPs for months.

Under the party’s federal constitution, intervention in a state branch is only possible because of financial mismanagement, noncompliance with federal rules, or actions which “substantially prejudice” the party’s ability to win elections.

It would need support from 75 per cent of executive members and a simple majority of division presidents, a high threshold which some Liberal figures said would be hard to reach, given other states would be unlikely to support setting a precedent for federal intervention.

Internal discontent is also rising over the indefinite delay — caused by the pandemic — of the party’s annual state council, preventing elections for Mr Clark’s position and places on the powerful administrative committee.

Liberal state president Robert Clark. Picture: Josie Hayden
Liberal state president Robert Clark. Picture: Josie Hayden

Health Minister Greg Hunt said it was important elections were held soon to “soothe the tensions”.

One Liberal said it was hypocritical for party figures to be contemplating an intervention — which would likely disenfranchise branch members — while also demanding new elections.

While some Liberals welcomed Mr Bastiaan’s resignation, they warned further instability and infighting was inevitable unless there was widespread cultural change.

Mr Sukkar on Tuesday faced claims that one of his electorate officers also designed political materials, and that some Liberal councillors had paid his office for printed campaign materials.

The Herald Sun has been told Mr Sukkar had used political funds to run a separate campaign field office for several years, in an effort to separate political work from his taxpayer-funded electorate office.

Scott Morrison has not spoken with frontbencher Michael Sukkar about the branch stacking allegations levels against him this week.

When the Prime Minister was asked if Mr Sukkar should be responsible for his staff after he blamed one of his former electorate officers for using taxpayer funds for political purposes, Mr Morrison said the matter was with the Department of Finance.

“These matters have been referred by Mr Sukkar the Department of Finance and that’s the appropriate response,” Mr Morrison said on Wednesday morning.

“I’ve been dealing with the COVID crisis.

“I’ve been dealing with getting people back into jobs.

“The matter has been referred to the Department of Finance.

“I don’t think that Australians would want me distracted by those issues at all.”

tom.minear@news.com.au

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Original URL: https://www.heraldsun.com.au/news/victoria/josh-frydenberg-floats-federal-intervention-in-victorian-liberal-party-branch/news-story/626cdb92133fa1a09878cb3a57e9596b